Market Overview
Oxygen therapy market comprises of products that are used to contain and deliver specific concentration of oxygen to the respiratory system of a patient with compromised respiratory function or to help with wound healing and other applications that require additional supply of oxygen. The North America & Europe oxygen therapy market reached USD 3,140.98 million in 2019 and is expected to reach USD 6,073.88 million by 2028, by registering a CAGR of 7.60%, across the regions during the forecast period, i.e. 2021-2028. The growth in the market is primarily attributed to the growing demand for various respiratory care medical devices across the region.
Currently, the oxygen therapy equipment is being used for various health disorders such as Chronic Obstructive Pulmonary Disease (COPD), asthma, and others. The increasing prevalence of these respiratory diseases is contributing to the expansion of the oxygen therapy market. Additionally, the development of technologically advanced oxygen therapy devices is also anticipated to propel the market growth. Furthermore, the increasing collaboration between the manufacturers and healthcare providers is also expected to fuel the demand for advanced oxygen therapy products over the future years.
Moreover, various factors such as technological innovations, rising awareness among the medical community regarding development of products for early treatment, is resulting in a rise in the demand for these products. Further, changing government initiatives to improve the availability and access to medical resources at remote areas is also resulting in patients availing respiratory care at an early stage.
Regional Growth Highlights during 2018–2028
North America had a significant market share in the year 2019 and is expected to dominate the market, over the forecast period. The growth in the region can be attributed to the increase in the investments towards healthcare from government and private entities to maintain the highest quality of care offered in healthcare facilities. The US is the major country driving the growth in the region, reaching a market value of USD 1,586.00 million in 2019 and is expected to grow at a CAGR of 7.95% over the forecast period. On the back of the rising adoption of innovative oxygen therapy technologies improving the overall quality of life, the market is expected to grow over the forecast period.
Moreover, increase in research and development activities in the field of respiratory health by various medical and biomedical companies and increasing cases of disease indications such as COPD & asthma in North America are further expected to boost the market of oxygen therapy. Moreover, the outbreak of COVID-19 is expected to positively impact the market as increasing number of end-users are turning towards advanced technologies for efficient management of disease indications to reduce the dependence on pharma products and improve the overall quality of life with appropriate supportive care.
The US healthcare infrastructure is highly advanced in comparison to many other countries with high availability of medical technology and state of the art facilities along with the highest spending capacity in healthcare sector than in any other countries across the globe. The current healthcare spending in the US is shifting owing to the geopolitical tension between the US and China. The US had total number of 6,146 hospitals in 2018, with 36,353,946 admissions and total expenses of USD 1,112.2 billion.
However, additional factors such as the growing geo-political tensions with various countries impacting the trade of various medical products, uncertainties and occurrences of misinformation of health indicators along with growing civil unrest is expected to have negative impact on the effective balance of product demand and supply.
Europe is expected to reach a market size of USD 2,485.30 million by 2028 owing to the increasing demand for oxygen therapy from nations such as Germany, UK, France & Italy. It has been observed that with the availability of various supportive care devices, there has been a rise in demand for effective oxygen therapy products in the region for improving overall respiratory health in patients with disorders such as COPD & asthma.
Market Segmentation Synopsis
By Product
According to the segmentation by product type, the market is segmented into oxygen source equipment, oxygen delivery devices and hyperbaric oxygen therapy chamber. Out of these the oxygen source equipment segment is presently generating the highest demand. This segment, which registered the largest market share of 67.97% in the year 2018, is expected to capture a market size with USD 2,286.98 million by the year 2020. The segment is also expected to grow at a CAGR of 7.36% over the forecast period.
Over the years, oxygen source equipment has evolved in order to address the challenges associated with oxygen therapy. Broadly oxygen therapy equipment is segmented into oxygen concentrators, oxygen cylinders & tanks, and PAP devices. CLICK TO DOWNLOAD SAMPLE REPORT
Oxygen concentrators are used for the provision of long-term oxygen therapy to the patients suffering from pulmonary disorders such as chronic obstructive pulmonary disease (COPD). As per the WHO, COPD is a progressive life-threatening lung disorder and the prevalence of the disease is increasing in North American & European countries.
By Indication
According to the segmentation by indication, the market is segmented into chronic obstructive pulmonary disease, asthma, cystic fibrosis, pneumonia, respiratory distress syndrome, obstructive sleep apnea and others. Out of these the chronic obstructive pulmonary disease segment is presently generating the highest demand capturing a market size of USD 1,203.38 million in the year 2019 and is expected to grow at a CAGR of 8.22% over the forecast period.
The Chronic Obstructive Pulmonary Disease (COPD) is a common respiratory disease which can further lead to difficulty in breathing. Smoking is considered as the major cause of the disease. According to the WHO, tobacco kills approximately 8 million people each year which has further resulted in the increasing incidences of COPD.
According to the Global Initiative for Chronic Obstructive Lung Disease, respiratory diseases accounted to 6% of direct costs to the healthcare budget in the European Union, with about 56% within it attributed to COPD. This has further created a surge in demand for advanced oxygen therapy equipment, thus catering to the expansion of the market.
The market is primarily driven by constant demand generated by high prevalence of COPD patients.
By Portability
On the basis of portability, the market is bifurcated into standalone devices & portable devices segments out of which standalone devices segment is capturing the largest market with USD 2532.01 million in 2020. This segment is expected to grow with a CAGR of 7.17% over the forecast period.
Standalone devices occupy the largest share in North America and Europe oxygen therapy market. These are stationary devices, which are comparatively bigger and bulkier as compared to portable devices. These devices cater to the requirements in larger healthcare facilities that witness a higher patient footfall for respiratory indications often requiring longer periods of therapy in comparison to emergencies witnessed in smaller clinics and other facilities.
However, in terms of overall oxygen output these devices generate more amount of oxygen per minute due to its larger storage capacity. In addition, it provides continuous oxygen flow and runs constantly during inhalation and exhalation.
By Distribution Channel
On the basis of distribution channel, the market is segmented into online & offline channels. The oxygen therapy products are more commonly sold through the offline sales channels. The online segment is expected to grow with a higher rate over the forecast period with a CAGR of 8.14% while capturing a market size of USD 766.81 million in the year 2019.
Although the online sales channel are witnessing rapid growth currently, majority of the market is driven by conventional offline purchase directly from the manufacturers or local distributors. Additionally, the delivery of counterfeit products through various online sales channels are particularly concerning for end-users. Furthermore, the offline stores offer the buyers to pick the appropriate supplies in discounted, bulk or in particular cases even at wholesale rates. Additionally, the customer can easily interact with the salesman or the healthcare professional about the medical device, which can further enable the customer to make an appropriate choice. Further, a substantial share of the sales is accounted to recurring income generated from trusted manufacturers for consumables and disposable products in addition to the capital equipment products such as concentrator.
By End User
On the basis of end user, the market is segmented into hospitals , clinics , ambulatory surgical centers and others out of which the hospitals segment, which registered a market share of 62.69% in the year 2018, is capturing the largest market with USD 2,107.60 million in 2020 and is expected to grow with a CAGR of 7.31% over the forecast period. This is primarily attributed to higher footfall at these larger facilities for specialized care for respiratory indications requiring advanced care.
The hospitals witness a high patient influx as compared to the other healthcare facilities, thus the witnessing a high demand for oxygen therapy equipment. According to AHA, total number of all the US registered hospitals are 5,534 and total expenses for all the US registered hospitals is USD 991,531.8 million which is further projected to raise the demand for oxygen therapy equipment. Additionally, the hospitals are investing significantly on research & development, which in turn is anticipated to contribute to the market subsequently.
Market Drivers & Challenges
Growth Indicators
Increasing Healthcare Expenditure
Increasing geriatric population across the regions is expected to raise the demand for advanced products required for the treatment of various respiratory diseases. According to the National Institute of Health, Chronic Obstructive Pulmonary Disease (COPD), is the third leading cause of death among people belonging to the age group 65 and over. Besides, it is also estimated that by 2020, the number of people belonging to the age group 60 and older will outnumber the population of children younger than 5 years. The increasing prevalence of respiratory disease is further expected to raise the demand for advanced healthcare products, thereby raising the pressure on the existing healthcare infrastructure. Countries are increasingly investing to improve the patient outcomes and overall quality of life.
Healthcare is one of the highest growth industries in North America & Europe. Growing healthcare investment by various public as well as private companies across the region acts as a driving force for the oxygen therapy market. According to Centre for Medicare & Medicaid Services, US national health expenditure grew from USD1369.2 billion to USD 3649.4 billion from 2000 to 2018. The healthcare spending on patient care has increased dramatically to 2.4% in 2018 as compared to 0.3% in 2010, according to OECD, with an average public funding accounting for 15% of the total government expenditure.
Increasing Incidences of Pneumonia
The oxygen therapy market has witnessed significant growth over the past few years owing to the increasing prevalence of pneumonia and other respiratory diseases.
Additionally, as per the UNICEF pneumonia kills more children than other infectious diseases, making it a global concern on account of which, high-income countries such as US & Germany are investing in minimizing and managing the risk effectively.
This has further created a surge in demand for oxygen cylinders, and other devices, which in turn is anticipated to accelerate the market growth in the forthcoming years. Along with pneumonia, other respiratory diseases such as Chronic Obstructive Pulmonary Disease (COPD), asthma, and others have also created a surge in demand for oxygen therapy equipment, thus fueling up the market growth.
Increasing R&D and Healthcare Expenditure
The increasing investment in various international research programs funded by the government as well as other organizations such as the World Health Organization is one of the major factors accelerating the market growth.
Furthermore, the healthcare spending has increased gradually over the years in various countries across North America & Europe, owing to the rising geriatric population, increasing prevalence of chronic diseases, increase in the price of healthcare services, and others. Additionally, the increasing investment in the research and development sector is also expected to promote the market growth in the forecast period.
According to Health System Tracker, in US, the amount spent on health had more than doubled to USD 3.5 trillion in 2017 which include amount spent on healthcare and health-related activities including expenditures from both public and private funds. The advanced healthcare infrastructure of countries including the United States, Germany, UK, and others is also expected to aid the growth of the market.
Increasing Technological Advancement
The increasing prevalence of respiratory diseases has encouraged various manufacturers to develop advanced products incorporated with latest technology. The technology-based treatment is currently evolving, thus generating a need for advanced treatment solutions. Recently, various products have been developed for the treatment of acute and respiratory failure in different clinical scenarios. Currently, various innovations have been developed that automatically adjust the flow of oxygen according to the needs of the patient.
For instance, recently a product has been developed namely Respironics SimplyFlo which is approximately the size of a mid-sized portable oxygen concentrator. Advances in technology and the use of information will act as driving forces that will impact oxygen therapy market over the next decade. This would include advances in various oxygen therapy devices.
Further rising number of healthcare institutions are adopting advanced technologies such as hyperbaric chamber technologies to provide advanced care to patients with specialized needs for wound healing, and other clinically approved indications.
Challenges
Stringent Regulatory Policies
The oxygen therapy market is anticipated to retain limited number of players due to several strict regulatory policies which is expected to pose moderate threat to the market. Additionally, the cost constraints associated with the oxygen therapy equipment is also anticipated to negatively impact its demand in the forthco
